UNITED INDIA INSURANCE CO. LTD. versus NARENDRA PANDURANG KADAM AND ORS.

Citation: [1994] SUPP. 6 S.C.R. 687 · Decided: 16-12-1994 · Supreme Court of India · Bench: B.P. JEEVAN REDDY · Disposal: Dismissed

Judgment (excerpt)

• 
UNITED INDIA INSURANCE CO. LTD. 
A 
v. 
NARENDRA PANDURANG KADAM AND ORS. 
DECEMBER 16,1994 
[B.P. JEEV AN REDDY AND SUHAS C. SEN, JJ.] 
B 
Motor Vehicles Act, 1939: Section I JO-CC. 
Accident-Compensation claim-Interest on-Held interest cannot be 
awarded from a date earlier than the date of claim-Held on facts 
interference with order of interest not called for. 
C 
In a road accident the respondent, a young man of good health, a 
sportsman and a bright student, sustained fracture of the bone in the 
left leg resulting in permanent shortening of the leg, disability of the 
right index finger, fracture of ribs, loss of vision of both eyes with D 
100% disability. Besides one of his kidneys had also to be removed. The 
Motor Accident Claims Tribunal, held that claimant had proved that 
the accident was due to the rash and negligent driving on the part of 
the driver of the bus which was insured with the appellant-Insurance 
Company. Having regard to injuries suffered by the claimant, the 
Tribunal awarded a compensation of Rs. 1,50,000. On appeal the High E 
Court enhanced the compensation to Rs. 2,50,000 with interest @ 12% 
per annum .from the date of accident till actual payment. 
In appeal to this Court, preferred by the Insurance Company, it 
was contended that a Court or Tribunal cannot allow interest from a 
date earlier than the date of making the claim for compensation. 
F 
Dismissing the appeal, this Court 
HELD: 1. Ideally a claim should be settled as soon as it is made. 
Because of the delay in settlement of the claim by legal process or 
otherwise interest may be awarded but such interest cannot be from a G 
date earlier than the date of the claim. The language of Section 110-CC 
of the Motor Vehicles Act, 1939, is clear that the interest can be 
awarded by the Court or Tribunal at such rate as it thinks fit but the 
interest cannot be made payable from a date earlier than the date of 
the claim. [690 D] 
H 
687 
A 
B 
c 
688 
SUPREME COURT REPORTS 
[1994] SUPP. 6 S.C.R 
2. The accident caused by the rash and negligent driving of the bus 
has ruined the life of the claimant. The amount of compensation given 
by the High Court does not appear to be on the high side. Considering 
the enormity of the suffering underwent by the claimant and also the 
permanent injuries sustained by him as well as loss of future income 
and enjoyment of life, this Court is disinclined to interfere with the 
order directing payment of interest, which will have the effect of 
further reduction in the quantum of compensation awarded by the 
High Court. [690 E, 691 D] 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9465 of 
1994. 
From the Judgment and Order dated 17.2.86 of the Bombay High 
Court in F.C.A.No. 41of1985. 
S.C. Dhanda and Ms. Sushma Suri for the Appellant. 
D 
The Judgment of the Court was delivered by 
E 
F 
G 
H 
SEN, J. Leave granted. 
This case has arisen out of an insurance claim made by Narendra 
Pandurang Kadam. Narendra was a bright student studying Industrial 
Electronics. He stood first in his class and fourth in the college. He was 
physically fit and a sportsman. On 18.5.1980, at about 6 A.M. Narendra 
was travelling with one Sunil David on motorcycle bearing No.GDC-7526 
along Afonso do Albuquerque Road, Panaji, Goa. When the motorcycle 
carrying the claimant and his companion had reached a road crossing the 
bus No. GDS-1574 driven by the Alisaheb Appasaheb Nadar, belonging to 
Ashok Vishwanath Naik came from the western section of Albuquerque 
road, and collided with the motorcycle. As a result of which Narendre 
sustained serious injuries. 
Narendra's case is that the accident was due to rash and negligent 
driving on the part of the driver of the bus. He was plying the bus at very 
high speed, and was unable to control the vehicle at the intersection. After 
the accident the motor cycle was dragged to a considerable distance before 
the bus could be stopped. As a result of the accident, Narendra sustained 
fracture of the bone in the left leg resulting in permanent shortening of the 
leg, disability of the right index finger, fracture of the 6th and 7th ribs, loss 
of vision of both eyes with 100% disability and one of his kidneys had to be 
.. 
• 
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• 
UNITED INDIA INSURANCE CO. LTD. v. N. P. KADAM [SEN, J.] 689 
removed. The bus was insured with United India Insurance Company Ltd., A 
the appellant herein. 
Narendra lodged a claim for compensation before the Motor Accident 
Claims Tribunal, Pa

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